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on Economic Geography |
| By: | Berliant, Marcus; Tabuchi, Takatoshi |
| Abstract: | To investigate questions related to migration and trade, a model of regional or international development is created by altering Melitz and Ottaviano (2008) to include a labor market. The model is then applied to analyze poverty traps and the home market effect. We find that in the spatial economics context of migration but no trade, poverty can persist unless population in one region of many is pushed past a threshold. Then growth commences. In the context of trade but no migration, the home market effect holds for a range of parameters, similar to previous literature. However, unlike previous literature, we find that if populations in the countries are large, the home market effect can be reversed. |
| Keywords: | Monopolistic competition; Poverty trap; Home market effect; Labor market clearing |
| JEL: | F12 R11 |
| Date: | 2024–07–31 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121619 |
| By: | Autor, David (MIT); Dorn, David (University of Zurich); Hanson, Gordon H. (Harvard University) |
| Abstract: | Previous research finds that the greater geographic mobility of foreign than native-born workers facilitates labor market adjustment to shifting regional economic conditions. We examine immigration's role in enabling U.S. commuting zones to respond to manufacturing job loss caused by import competition from China. Although foreign-born population headcounts fell by a larger proportion than those of the native-born in trade-exposed regions, the contribution of immigration to labor market adjustment in this episode was small. Because most U.S. immigrants arrived in the country after manufacturing regions were already mature, few took jobs in industries that later saw import surges. The foreign-born population share in regions with high trade exposure was only three-fifths that in regions with low exposure. Immigration may do more to aid adjustment to cyclical shocks, in which job loss follows recent hiring booms, than to aid adjustment to secular decline, in which hiring booms occurred longer ago. |
| Keywords: | immigration, import competition, geographic labor mobility, manufacturing decline, job loss |
| JEL: | E24 F14 F16 J23 J31 L60 O47 R12 R23 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17213 |
| By: | Luca Lodi |
| Abstract: | This paper analyzes the effect of population density on international trade using a theoretical and empirical framework. It builds on the works of Allen and Arkolakis (2014), Allen et al. (2020) and Freeman et al. (2021) to derive a structural gravity model that identifies the impact of country-specific features on bilateral exports. The study interprets Heid et al. (2020) and Freeman et al. (2021) empirical approaches. Focusing on population density as a component of productivity and agglomeration, it explores how density influences country specialization and comparative advantages in labor-intensive or natural resource-dependent industries. The research suggests that population density significantly impacts manufacturing but negatively affects mining, with further investigation needed for agriculture, forestry, and fisheries. |
| Keywords: | structural gravity model, economic geography, population density |
| JEL: | F00 F12 F14 F19 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:frz:wpaper:wp2024_11.rdf |
| By: | Salla Kalin; Antoine B. Levy; Mathilde Muñoz |
| Abstract: | This paper investigates whether and why pensioners move across borders in response to tax rate differentials. In 2013, retirees relocating to Portugal became eligible to a full tax exemption of foreign-source pensions. Contrary to the broadly held belief that seniors "age in place", we find substantial international mobility responses to the reform, concentrated among wealthy and educated pensioners in higher-tax origin countries. The implied migration elasticity of the stock of foreign pensioners to the net-of-tax rate is large (between 1.5 and 2) and increases at longer horizons. Tax-induced retirement migration clusters in space, and exhibits amplification and hysteresis patterns consistent with agglomeration through endogenous amenities. We show such forces theoretically and empirically have significant implications for optimal tax rates, and for the limited efficacy of unilateral policy responses to tax competition, like the source-based taxation of pensions. |
| JEL: | H21 H31 R12 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32890 |
| By: | Da Hoang; Duong Trung Le; Ha Nguyen; Mr. Nikola Spatafora |
| Abstract: | We use a new dataset to estimate the impact of temperature on economic activity at a more geographically and temporally disaggregated level than the existing literature. Analyzing 30-kilometer grid cells at a monthly frequency, temperature has a negative, highly statistically significant, and quantitatively large effect on output: a 1 °C increase in monthly temperature is associated with a 0.77 percent reduction in nighttime lights, a proxy for local economic activity. The effects of even a temporary increase in temperature persist for almost one year after the shock. Increases in temperature have an especially large, negative impact on growth in poorer countries, indicating that they are more vulnerable to the impact of climate change. |
| Keywords: | Climate change; temperature; economic growth; nighttime lights |
| Date: | 2024–08–16 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/178 |
| By: | Poorthuis, Ate; Chen, Qingqing; Zook, Matthew |
| Abstract: | In this article, we present a historical dataset of activity spaces, originally based on publicly posted and geotagged social media sent within the United States from 2012 to 2019. The dataset, which contains approximately 2 million users and 1.2 billion data points, is de-identified and spatially aggregated to enable ethical and broad sharing across the research community. By publishing the dataset, we hope to help researchers to quickly access and filter data to study people’s activity spaces across a range of places. In this article, we first describe the construction and characteristics of this dataset and then highlight certain limitations of the data through an illustrative analysis of potential bias – an important consideration when using data not collected through representative sampling. Our goal is to empower researchers to create novel, insightful research projects of their own design based on this dataset. |
| Date: | 2024–07–16 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:sgj4f |